07:23 AM EDT, 09/12/2024 (MT Newswires) -- Canada will release the national balance sheet accounts for Q2 at 8:30 a.m. ET on Thursday, said Bank of Montreal (BMO).

The bank noted that Canadian household disposable income continued to outpace growth in debt in Q2. The latter remained muted as interest rates stayed restrictive, keeping a lid on growth in mortgage demand.

BMO expects household debt-to-income ratios to fall for the eighth straight quarter, while the seasonal adjustment could push the ratio down further. The debt-service ratio will be closely watched after it ticked down in Q1 but persisted near all-time highs and faces additional upward pressure as mortgages reset.

Looking ahead, household debt-to-income ratios are expected to continue improving as elevated -- though falling -- rates keep mortgage demand soft in the coming quarters, added the bank.

Canada will also release building permits for July at 8:30 a.m. ET Thursday, which are expected to rebound 10% month over month after a 14% decline in the prior month, according to BMO.